Who am I? Dr John Oliver, Associate Professor in Media Management
Executive Member and former Deputy President, European Media Management Association
Visiting Fellow at Reuters Institute (University of Oxford)
Research lead for BU Creative, Digital & Cognitive Science (150 staff)
Background in marketing, advertising, strategic management, consulting and executive training
Published in international media and management journals
Practice-led research and teaching philosophy
Examine the nature of marketing and what makes it ‘strategic’
Evaluate strategic trends in the media environment.
Understand the nature of aspects of marketing theory.
Day 1: Understanding the Strategic Marketing Environment
Day 2: Developing Strategic Marketing Responses
Teaching Block Programme
Key readings on VLE – use them to support your assignment discussion.
Engage in tutorial support (online, telephone, skype).
People who engage, do better than those who dont!
Online Support
Lecture Outline
1. Evaluating Marketing Definitions
2. Changing Focus of Marketing
3. Corporate Strategy, Marketing Strategy and Marketing Plan
4. Philosophical Orientations (Market v Brand)
5. The 7 Ps Marketing
6. Marketing Strategy & Ethics
7. Summary
Indicative Reading
Brennan, R., et al (2008). Contemporary Strategic Marketing, Chapter 1
Gronroos, C., (2006). On defining marketing: finding a new road map for marketing. Marketing Theory, Dec, Vol. 6, Issue 4, 395-417
Hooley, G. J., et al (2012). Marketing Strategy & Competitive Positioning, FT Prentice Hall, Chapters 1, 2
Lusch, R.F. and Vargo. S.L., (2006). The Service Dominant Logic of Marketing. Dialog, Debate, and Directions, Armonk, NY:M.E. Sharpe
Urde, M., Baumgarth, C. and Merrilees B., (2013). Brand orientation and market orientation – From Alternatives to synergy. Journal of Business Research, Vol.66, Issue 1, pp. 13-20
Varadarajan, R., (2010). Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises. Journal of the Academy of Marketing Science, 38, 119–140.
“an organization’sintegrated pattern of decisions that specify its crucial
choicesconcerning products, markets, marketing activities and
marketing resources in the creation, communication and/ordelivery of products that offer value to customers”
Varadarajan (2009:119)
“The management process responsible for identifying, anticipating and satisfying customer requirements
profitably”. Chartered Institute Of Marketing (2011)
“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large”.
American Marketing Association (2014)
1. Evaluating Marketing Definitions
2. Changing Focus of MarketingFo
cus
of
Activi
ty
1950s
1960s 1980’s
1990’s 2000s
Consumer Marketing
Industrial Marketing
Non-profit marketing
Services MarketingRelationship
MarketingDigital Marketing
1970s
Source: Adapted from Christopher, Payne, Ballantyne (1993:9)
Experiential Marketing
3. Corporate Strategy, Marketing Strategy & Marketing Plan
Corporate Strategy
Marketing Strategy
Marketing Plan
Purpose, Scope, Mission and Direction
Market, core strategy, positioning, and competitive advantage
Marketing mix, budgeting, implementation and control
So what is Strategic Marketing?
Concerned with a “long range” and “systematic analysis” of marketing trends.
Links marketing strategy to corporate strategy
Continuous analysis of the marketing environment;
- PESTEL- the nature of an industry- competition- changing consumer needs- strengths / weaknesses of the
company- the brand portfolio and
architecture
“Marketing must be
related to strategy and not only or
predominantly occupy itself with tactical
issues”Gronroos (2004:396)
An “action orientated” process concerned with the day-to-day management of the marketing strategy. This will involve;
Devising a marketing plan (objectives, positioning, tactics)
To generate sales and repeat sales
Using the most efficient and cost effective marketing communications methods
Managing the marketing budget (how much can we/should we spend?)
Managing the 7 Ps in the marketing mix
Marketing Plan
4. Philosophical Orientations (Market v Brand)
“How can management square
the general principle that the customer is king
with the specific beliefthat our brands are our
greatest assets?”
Urde, Baumgarth, Merrilees (2013:13)
Much discussion on whether firms should have a market orientation or a brand orientation
An outside–in (the market drives the company)
An inside-out (the brand drives the company)
A Market Orientation Changes in the market drive company values and strategy
Keeping up with changing consumer trends is essential
Satisfaction of customer needs and wants is paramount
Market segmentation is keyCustomer relationship management is essential
Key performance indicators include customer satisfaction, customer loyalty or churn, customer lifetime value
“Market orientation is on a more uncomplicated,
short-term, andfundamental level. If an
organization is only market oriented, then
it's still in the discussion about products and
markets.” (Urde, 1999:118)
A Brand Orientation Brand identity and values guide organisational culture, behaviour and strategy.
Prioritizing the brand in the organisation gives it integrity in relation to customers' desires and the actions of competitors.
Brand is more important than the needs and wants of customers
The brand is a strategic resource
Evaluates management proposals depending upon what the impact on the brand
“Brand orientation is an approach in which the
process of the organization revolve around the creation,
development, and protection of brand
identity in an ongoing interaction with target
customers with the aim of achieving
lasting competitive advantages in the form of brands”
(Urde, 1999:119)
4. The 7 Ps of Marketing
The &These ingredients should be mixed and managed to successfully market products/services…at a profit!
An incorrect marketing mix will mean that customer wants and needs will not be satisfied
The 7Ps is a simple platform on which to develop successful marketing strategies
“The marketing function is the study of market forces and factors and the development of a company’s position to
optimise its benefit from them”.
Chartered Institute of Marketing (2009:2)
Product (Service)Should be developed in order to satisfy customer needs and wants It should provide the customer with value Think about: quality, features, packaging, variety, warranties
PriceAll other elements of the marketing mix involve cost. This variable is concerned with REVENUE. It also positions you in the market place.
What cost per unit?What pricing methods and payment terms?DiscountsCredit terms
PlaceConcerned with the distribution of the product/service. You need to think about the availability, quantity, time of delivery and place.
Location of sales outlets Method of transport Inventory level Online distribution
PromotionDecisions have to be made about the marketing communications mix, the spend, the timing, the proportions in the mix, how we integrate communications to get a consistent brand message
Advertising Personal Selling Sales Promotions Public Relations Direct Marketing
PeopleAnyone who comes into contact with the customersPeople deliver your promisesAre they well trained, motivated?Customers struggle to separate the product from the people to deliver it
ProcessWhat processes are involved in delivering your product?Processes are usually designed for the company’s benefit not the customer
Think about customer information, waiting times, website navigation etc
Physical Evidence
A service is intangible and therefore considered risky by consumers
Facilities are important (clean, tidy, ambience)
Provide customer testimonials, case studies Provide the customer with an experience
No organisation can divorce itself from the society in which it operates. As ethics concerns the study of moral principles, sometimes the requirements of business and customers conflict.
“The role of the marketer these days could be seen in terms of connecting with stakeholders not only in terms of value, but in terms of values. In a world
where intangible assets and corporate reputation are centre stage, the marketing team needs to focus on
ethical issues more than ever before.”Chartered Institute of Marketing (2011)
6. Marketing Strategy & Ethics
Report to professional bodies In-house Codes of Practice Government Codes of Practice Governance/Social Responsibility Regulatory Bodies, The Law
Organisations adopt a “social responsibility stance” as part of their marketing strategy.
This can act of as a competitive advantage, attract & retain high calibre staff, provide an opportunity for sponsorship/publicity.
Addressing unethical behaviour
Marketing Strategy should link to Corporate Strategy
Strategic Marketing involves analysis of the current and long term competitive environment
Tactical marketing is concerned with implementing the strategy by way of a marketing plan
Marketing needs to create ‘customer value’ ‘manage customer relationships’ ‘create profit’
Marketing achieves company goals by meeting and exceeding customer needs better than the competition.
This should be done ethically!
8. Summary